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Retirement Corner

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Surviving Market Volatility

In the current market conditions, it can be easy for some investors to be discouraged.  However, there may be better ways to deal with this volatility than by pulling your money out of the market.  Despite its volatility, the world economy has grown every year since Black Monday in October 1987, with an average annual gain of 3.7%.

In the past 81 years, there have only been four times in which the market failed to yield positive returns for two or more consecutive years. Each time, the negative returns were followed by above-average positive returns. Though this pattern is not guaranteed to repeat itself, it does illustrate the market's potential and suggests that if you stay focused on a regular investment plan, you could take advantage of a rebound.

Participants in employer-sponsored retirement plans, such as the UTSaver Tax Sheltered Annuity (TSA) and the UTSaver Deferred Compensation Plan (DCP), who stay the course may find themselves in a good position to benefit when the market rises again. When the market rebounds, investors who hung in there and waited out the cycle have seen the most growth in their portfolios.

What can you do now?

Article courtesy Lincoln Financial and Metlife Resources.